As stock markets rallied after news of a 90-day trade war truce between China and the U.S., some stakeholders remain cautious about what it could mean for the Canadian economy and consumers.
“We’ll be monitoring the China-U.S. discussion closely in the months ahead, as the details of any final agreement will matter.”
In a statement, the Retail Council of Canada also said the group, “welcomes this development, but we’re not popping the champagne just yet.”
“The 30% tariff that the U.S. continues to impose on itself is deeply damaging—not only to American businesses and consumers but also to global supply chains already facing significant disruption,” the council said.
What has changed in the trade war?
On Monday, U.S. President Donald Trump, along with Chinese officials, announced plans to reduce tariffs for a period of 90 days.
The U.S. agreed to drop its 145 per cent tariff rate on Chinese goods by 115 per cent to 30 per cent, while China agreed to lower its rate on U.S. goods by the same amount to 10 per cent.
Trump referred to Monday’s trade announcement as “a total reset with China.”
For the brief period that 145 per cent tariffs were imposed, it became very difficult for businesses to to operate normally with many seeking alternatives, or halting shipments altogether.
The news follows developments over the weekend after officials from China and the U.S. met in Geneva.